Every country around the world has a set of own procedures to get a new business going, and Latvia is not an exception. To set up a company in Latvia is a straightforward registration procedure, and it only takes a short period of time to do it. As stated in an analysis done by Doing Business, if you want to open a business in the Republic of Latvia, you must follow four procedures, the process will take almost 13 days, it will cost 1.9% of income per capita and will need a paid-in minimum capital of 0.0% of income per capita. According to Doing Business data, Latvia is in the 57th place in a worldwide ranking of 189 economies on the ease of starting a business. This is a paramount since you as an owner and your employees will be greatly benefit from the formal registration of the business. For instance, companies that are formally registered are freely admitted to institutions and services such as banks, courts, and divers markets, and the staff members will have welfare given by the government laws. If you are an entrepreneur who is seeing Latvian economy as an opportunity for your business idea, keep on reading because here you will find what steps you must follow to make a proper registration of your company in Latvia.
IMPORTANT DECISIONS FIRST
Before doing anything on the legal part, you have to decide what will be the name of your company, what types of business activities will run your company, and what legal structure will suit best for your business (SIA, AS, Branch, etc.). All these information will be needed for the registration and for tax purposes.
FILL THE APPLICATIONS AND GATHER THE REQUIRED DOCUMENTS
After deciding the aspects on the first step, you must sign a document of association in front of a Latvian public notary which will contain the rules assigned to all members, what are their names, addresses and functions. This document must also contain the activity of the company and the structure chosen for the board. In addition, you must request or download the forms required for the company registration at the Commercial Register of Latvia. You can find these forms physically at their offices, or you can download them from its web site – www.latvija.lv –.
SET UP A BANK ACCOUNT
This step is required to obtain a receipt of reference from the bank that shows the share capital of your company. Normally, banks in Latvia do not charge any amount of money for opening a bank account. However, you will be asked to pay a fee, so the bank can certified the deposit of the share capital invested in your business. This fee can be around 10 Euros, but this will depend on the bank.
THE REGISTRATION IN THE COMMERCIAL REGISTRY
To fulfill this step, you will need all the documents you have gathered from the second step. Here is a list presented by Doing Business in its web site about the company incorporation documents you must submit to the Commercial Registry Office:
- A form for Registration application provided by the Registry with information about Board members and company share capital, and signed before a public notary
• Company charter
• Foundation agreement, and in case of one founder “Resolution on foundation”
• Proof of investment
• Consent to the election to the Supervisory Board (if existence of Supervisory Board is provided in company charter)
• Consent to the election to the Management Board
• Notice of the Management Board on legal address of the Company
• Power of Attorney in case any of the founders is signing the Registration application via authorized person
• Document certifying payment of estate duty
• Document certifying payment of the publication fee
All these documents must be taken to the Commercial Registry Office to be filed. These registration procedures can be done by other authorized individual. This office has also set up an online registration procedure on its web site, but you will need an Identification Card that can only be given to a Republic of Latvia citizen or to a person who has a residence permit. If you have the ID, you will also need a secure electronic signature for the total of business documents.
REGISTER EMPLOYEES AT THE STATE REVENUE SERVICE
According to Latvian law, you must register your company employees to the State Revenue Service, so they can get the mandatory state social insurance. If you do this procedure on paper, it must be done at least one day before your employee begins to work. If you do it via online, you can do it one hour before. You can find the Electronic Declaration System at https://eds.vid.gov.lv in the web site of the State Revenue Service.